tv Markets Now FOX Business September 14, 2012 1:00pm-3:00pm EDT
lori: tgif. what a bomb week it has been. good afternoon. i am lori rothman. melissa: rights are ongoing and egypt. protesters in the sudan storm the embassy. we will have the very latest and the impact here at home. lori: that thou still rising high. a five year high. following the fed's aggressive move yesterday. will it really help our economic
recovery? what threat does rising gas hold especially with all of this. melissa: charlie gasparino has more on a story he has been breaking. are the red sox looking for a buyer into good it the? we will have the latest here. lori: let's head straight to the floor of the new york stock exchange. nicole: we have seen stocks taking off, moving to multi- year highs. the nasdaq is at 12 year highs. the dow just a little away from its all-time high. that was back in october of 2007. we have seen lots of games across the board. i wanted to take a look at and what x. the ftc has charged them with
improper distribution. saying they sent it out to preparatory clients. an undertaking now that they will have to hire a consultant. that is the nyse. also, i want to talk about the dow. kraft will be leaving the dow. this will occur on the close of trading on september 21. kraft is spinning off. the new business will have a smaller market cap. back to you. lori: thank you so much. later this hour, s&p -- gives us his take. melissa: oil topping $100 a barrel since may as the fed
boosts stimulus. phil flynn of price future group within the pits at the cme for us. oil prices are unbearable for consumers and this could help push the global economy back into a recession. that is really bad news. phil: the market is taking this seriously. this is taking speculation that we will see an eminent relief. showing some resistance to this in the past. this may change his mind and may mean a relief it smart likely. we are seeing prices back at 98.73. that is amazing considering what we are seeing across the middle east. another headline is that this
violence has gone to nigeria. live rounds fired at protesters. back to you. melissa: it is a perfect storm for oil. also, be sure to tune into my one-hour special on oil. where should we go here is not i just got back and took a hard look at this exact issue. we will go over all of that tonight at 5:00 p.m. on fox business. lori: the federal reserves latest push to help the economy certainly pushing the stock market. let's go to peter barnes.
he is live in washington. peter: these outside economists are getting notes think this will lead to more jobs and lower interest rates. diane predicts the new stimulus will add about a half percentage point to gdp in 2014. former fed economist at the theater institute thinks it could be a half percent in 2013, which could create an additional 700,000 or so new jobs. >> what they are saying is they hope this sparks a strong recovery next year. despite that, and even if inflation goes a little above two, they will not tighten. they will not block this back. they will let this party, you know, get really roaring next year before they take the punch bowl away.
>> high frequency economics. this should help lower mortgage rates. yield fell by more than two tenths of a percentage. that should show up the mortgage rates soon. lori: thank you, peter. melissa: are the owners of the red sox looking to sell the struggling team? charlie gasparino broke the story yesterday. the owners are denying it. charlie gasparino joins us with more. charlie: i think qe3 is going to bail out the boston red sox. i really do. i just want to address something. qe1 did not work, qe2 did not work, you are pressing, you are pushing on a string. melissa: lou dobbs would say it did work. it saved us from going over a
cliff. charlie: barack obama would say that also. there are structural problems with this economy. too much regulation, to high taxes. that prevents businesses that can borrow from barring. it makes things even tighter. kiwi means you buy the securities and flush them with cash. i really believe that qe3 may fill out the boston red sox. melissa: how so? charlie: i do not know a lot about baseball. you do your research and start talking to people. it is kind of interesting. the owner is one of these 21st name guys, john henry. anyway, he owns an english soccer team that is the mirror image of this team.
lots of players. not doing very well. they need to cut. if you look at the boston red sox, just purely as a business, they just did a bank of america thinks where they just unloaded assets. when you look at this, the bigger story, i think, is not the fact they are thinking about selling, the fact is that this is a financially struggling enterprise and it is one of the great baseball cities that we know of and, obviously, one of the great franchises in the world. when you look at the business that this guy henry has, he has the liverpool team over here, he has that commodity business. you can go on their website. his funds are not doing very well. it is kind of a toxic stew right now. that is the biggest story from a
business standpoint. it looks like it is in trouble. he has not called me. we should point out this story is kind of interesting. we knew this would be the answer that they would go absolutely out of their minds when this hit. they just did not deny it, they went berserk. lori: bananas. charlie: i was on a sports talk radio show yesterday and he called and right after i went on. you know, this is kind of like the of the enemy of over reaction. we had this milf down. we knew how far to go out. i caught him with his hands and the cookie jar. lori: i love how you stir things
up. charlie: they pay me to do that, i guess. lori: violent protests spreading through the middle east. a live report from the region and moment. melissa: take a look out metals are trading right now. gold trading higher today. not a big surprise. silver a little lower. we will be right back. ♪ [ male announcer ] what if you had thermal night-vision goggles, like in a special opsission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading platform.
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melissa: the uprisings are spreading across the middle east. protesters taking down the american flag. the u.s. is sending marines to yemen. we are in afghanistan with the latest. connor. reporter: that violence of rights and protest across the middle east are spreading and they are intensifying. they are moving from country to country. the real flashpoint is tunisia. writers and protesters have breached the embassy walls. there broken windows. they have set tires on fire. there is black smoke coming out of the u.s. embassy. they have replaced the united state flag. there are also reports they have taken over an american school there as well. fox is trying to confirm all of
this. it is similar to what we are seeing and other countries, in particular lebanon. at least one person was killed in the protest. many more were wounded. this comes as pope benedict xvi arrived in lebanon. protesters they were seen ripping up his picture ahead of his visit to lebanon. here in afghanistan, we feared there would be widespread violence. so far, those have not materialized. it has been very peaceful here in kabul. there are real concerns that the rights will spread to afghanistan or pakistan in the coming days. melissa: connor, thank you for that report. lori: these are trying times,
that is for sure. let's see how the markets are reacting. nicole petallides is on the floor of the new york stock exchange. nicole: we are keeping a close eye on some of the office product retailers. there is news. the first set of news is stapled it now has private equity firms interested in taking it private. staples is not saying any of this is true. that is enough to get this stock a big boost. you see that boost happening there. i have to say another thing about office max. hitting a new 52 week high today. they can now book a gain of $671 million after some liabilities related to nodes that were backed by lehman brothers. back to you. lori: thank you for that,
nicole. melissa: that average price of gasoline is rising. will this cause consumers to hit the brakes on our slope moving recovery? find out after the break. lori: even higher today. check out the dollar. here is out until how it is faring. there are optimistic that europe is working towards a plan. we will be right back. ♪ with all the opinions about stocks out there, how do you know which ones to follow?
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pope benedict is in lebanon. during his visit he is expected to speak about the hardships faced by christians in the region as well as by let protest. someone who phoned in a bomb threat at the university of texas. someone claiming to be with al qaeda. they said bombs were placed all over. no bombs have been found and the president of the college is completely confident the campus is safe. those are your news headlines on the fox business network. now, back to melissa and lori. lori: thank you for that update. august retail sales jumped nearly 1%. that was the biggest increase in nearly six months. this also caused the cost of living to go up.
that was the largest news since june of 2009. how big of a concern is this? carl, it is great to see you. thank you for joining us. gas prices are higher today. do you see the gas price story impacting any kind of economic growth we can cross our fingers and hope for at this juncture good afternoon. thank you for having me back on the program. we were excited by the decline in retail gasoline prices rank the second quarter. that looked to be creating an economic tailwind that could help accelerate the pace of activity, especially household consumption in the second half of the year. that seems to be largely eroding. if we look at retail sales and strip out the gasoline component of that data that was reported earlier today, we still see
gains. we cannot entirely chopped the retail sales number up to gasoline prices. certainly, that was a major factor. acting without bob on consumptions. if we see further, this is undoubtedly going to wait on consumers over the next couple of months. i think we will see it in the next month or two. melissa: what do you think will happen ahead of gas prices? oil prices right now, where they are, they are unbearable. do you agree with that? >> i do not think they will stop the recovery at this point, but they certainly start to apply the brakes. if we start approaching five dollars per gallon on retail gasoline prices, that becomes truly troubling for economic prospects. as for now, it is nearly slowing
down the pace of consumption. yes, it is a problem, not quite as critical as those headlines you mentioned. lori: duties -- >> chairman bernanke trying to stimulate economic activity. certainly higher inflation does cause a damper. they are focused on the on employment rate and the labor market much more than the inflation side of their mandate. if we look at the inflation metrics, they are running relatively close to the feds target of 2%. on the unemployment front, we are clearly widely missing the feds goal of let's say 5.5%-6%. it will be the labor market that will dictate much more than
these inflation numbers. melissa: where to seat the labor market going? are you concerned as we watch this corruption in the middle east that will push prices higher? i am starting to get really concerned that this recovery is about to stall and turned in the other direction? >> how would you characterize it >> you sound a lot like chairman bernanke. melissa: it makes gas prices worst outfit devalues the dollar. >> chairman bernanke and the colleagues at the fed believe that it does work.
they ventured to estimate what the benefit was two overall economic output. if they add up qe1 and qe2, that estimate they added about three percentage points to gdp. melissa: we are out of time and you did not answer the question. are you worried or not worried? >> absolutely. i am worried about gas prices and a lot more worried about the fiscal cliff. lori: carl, thank you. melissa: coming up, just in case you were wondering the post office is still on congresses to do list. maybe the best fix is to have government just get out of the way. lori: let's take a look at some of the winners and losers on the s&p 500. there are some winners on the day with the dow climbing. ♪ tdd#: 1-800-345-2550 when i'm trading, i'm so into it,
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look at telecom companies and at&t and verizon. both were downgraded at stifel nicolaus. cut to a hold from a buy. weaker margins because they have to subsidize the iphone 5. while apple is hitting new highs at almost $700 you're seeing telecom stocks coming under pressure. how about another dow component here, that is 3m. it was a buy at bank of america and peril lynch. that is good us in. when you get a buy rating. just talking about the a die verdictfied company. they make everything from post it notes to optical business. they are range-bound but have a new price target here at 113. so at $93 and change upside potential. lowerry and melissa. melissa: nicole, thank you so much. tough to get anything done when the congress is your boss. just ask the nights postal service. it will run out of money in
november. they are cutting services and closing post offices. seems logical. time is running out. my next guest says the government should get out of the way and let the post office run itself. he is a visiting scholar at the american enterprise institute. nation very much for joining us. i saw a staggering statistic said the volume of mail has dropped its largest amount since the great depression. we've lost 25% of the volume between 2005 and now but unlike the great depression, that volume isn't likely to come back. this is a permanent change, right? >> well, melissa, really looks like it is a permanent change. i think you hit the nail on the head of a single fact about the u.s. postal service today is that its profit center which is first class mail i think you're referring to? melissa: yeah. >> has dropped 25% between 2005 and 2011. we don't have the final
numbers for the postal service's 2012 fiscal year where we're expecting that large drop to continue and, to go on another important thing that happened about that same time, around 2005, is that the volume of mail, which had tracked the growth of the u.s. economy and gdp between roughly 1970 and that time, stopped. so the change in mail volumes, started to decline while the economy was sort of doing its own thing. melissa: yeah. >> even if the u.s. economy makes a big comeback folks aren't really expecting the volume of mail to make a big comeback. melissa: you get everything by e-mail. i get all my bills and statements electronically now and don't waste the paper. you've seen revenue of the post office go down one% in the third quarter while expenses have gone up better than 10%. >> right. melissa: that doesn't mean it is a business without value. they do a lot of different things that can generate
revenue. came out with baseball stamps and baseball greats. those blew out. priority mail and express mail generate revenue. seems if this were a private business they would go out of business at this point when it is defaulting on its debt and running out of cash or private equity would buy it out and get rid of some of the leg fasy costs and get rid of services not making any money and focus on things that make money, right? is there a worthwhile business in there in your opinion? >> you clearly have a solid grip on this melissa, that is exactly right. most of the folks i talk to who follow these sorts of things think there is still a lot of value in the mail. just the nature of the mail is changing and the public policies towards the postal service have to change with it and it basically has to evolve in a way that would give the management of the postal service more flexibility over their business decisions. the same sorts of decisions that fedex and united parcel service makes a on a regular basis. and it is possible for the
postal service to adapt to what i think we all know is a massively changed communications marketplace with obviously instant messaging and texting and e-mails. phone calls being less expensive, all these things are really changing the nature of communications. but we've also seen parcel post improve at the postal service as a result of people i --. melissa: let them do what they need to do in order to right size this business? because the postmaster general has been on this show. knows what needs to be done . a lot of post offices have to be shut down. they have to cut costs. why doesn't the government get out of the way? >> tell you, melissa i have enormous respect for senior folks at the postal service between a rock and a hard place. congress will not give them the flexibility that they need. they're doing a terrific job in a very difficult situation but exactly like you say, that it is a political situation, whenever the postal service
talks about closing large sorting centers which employ a lot of people. melissa: right. >> congress says, oh, no, you can't close that sorting center that is in my congressional district. we really need to have some change in policy. we're hopeful after the election in the fall maybe once a new congress forms, that we will get some serious postal reform. if we don't see that, melissa. i'm afraid we'll see some major taxpayer bailouts even. melissa: we bring this up again because they're about to default on another payment. they will run out of cash in october. we talked about this before and nothing is getting fixed. the problem is getting worse. rick, thanks for coming on. >> thank you. melissa: up next it is back to liz claman in the valley. she has got the ceo, all right, of audience, inc., the chipmaker had a huge rise thanks to the iphone and then a big fall. find out what the future holds for them coming up next. lori: let's check interest rates. interesting story. we're seeing a big pop in yield. look at move on the 10-year up to 1.86%.
with the securities & exchange commission. this farc marks first time the sec brought charges against an exchange. they will fay a $5 million penalty and hire independent consultant to follow compliance systems. production slipped 1.2% from july as factories produced fewer cars and other manufacturing goods. shut down along the gulf of mexico because of hurricane isaac also took a toll. >> the rally on wall street may be losing momentum in afternoon trading. s&p 500 has a four-day winning streak. off session highs. that is the latest from the fox business network, giving you the power to prosper
operation. will resume at 2:00 p.m. earlier the university was evacuated due to a bomb threat. a bomb threat called in to the university of texas austin which was vac wasted and since reopened as well. lori: what happens when you launch a successful ipo but then lose one of your biggest customers just months later, can you survive it? liz claman in silicon valley with a boutique company that lost a you big fish or say the big apple. >> yeah. audience makes the chips that improve and sharpen your voice and audio quality in all kinds of smartphones. yes, it was revealed last week that the apple iphone would not be using audience's chips. it is sort of can you hear me crisply now company? they make it very sharp. does this mean a real problem for the company. analysts and stock price may show so but the analysts is here to tell me what will
filled void. >> thank you, liz. >> when it was resealed your chips would not be in the iphone the stock took a 60% hit, four analysts downgraded it and people were saying i can not believe this is happening. i believed in this company. why should they still? >> well, liz, we were really proud to be part of the revolutionary phone that apple launched in june of 2010 and the one that follow it and our focused today to continue to engage with players launching revolutionary phones in the market. we're working with eight out of the other top 10 phone oems who ship 80% of the smartphones. melissa: that is thing i wanted to point out. galaxy, anybody? you have one in your hand. you're in the galaxy, correct? >> audience powers the voice experience of galaxy 3-s from samsung which is leading selling smartphone in the market today. we're also in several of the med field platform devices you talked to paul otellini about the other day. >> intel low power using
chips big in a lot of smartphones he believes at least. >> exactly. we're going to be in a whole range of very compelling devices that are coming to market from other mobile phone. oems in the next three to six months in addition to entree in adjacent markets and pcs. >> you are telling me that the void that apple leaves would be filled by so many other opportunities. shareholders, who looked at, basically you went public in may, early may, right before facebook. you had a very strong ipo were saying why did we not know for potential of this is here and they're perhaps understandably aggravated? >> yes, well, what i can say is this. we all know apple sources technology in a different way than other oems and marches to its own drummer. and audience is focused on working with other mobile oems around the world who are responding strongly to the demand for best in class voice from merchant voice processing companies. >> you're saying with samsung, acer, google, wawai
may not be a name people hear about but it is big in silicon valley. they're a chinese company. everybody is talking about them. there is a real opportunity for future for audience, what you're saying? >> there is huge opportunity. because i'm glad you mentioned them because big opportunity we see in china not just wawia and fast moving companies known as the apple of china and we're starting to work with carriers such as china mobile to help them get best in class specifications for their devices. >> peter santos of audience. a lot of people wanted to talk you. we have you, close sievely here on stocks business. thank you for speaking with us. >> yeah. >> we're watching audience closely. boutique chipmaker still fighting back and saying, yes we are in other opportunities like the galaxy. coming up in the next couple of hours we're here live. yeah, this is really a garage. it is a startup called flipboard. we have the founders, coming up at 3:00 p.m. eastern and
so much more. we've got the sandisk ceo. cheg. that is the ereader, e textbook company where you can rent textbooks physician called and online. kind of a solution, especially since we're talking so much about the problem with student loans and how tough it is for college students to handle the costs. back to you from silicon valley. melissa: wow, liz, so many exclusive interviews. thanks for doing that. great content out of there, definitely. it is quarter too as we do every 15 minutes let's check the markets. nicole petallides on the floor of the new york stock exchange watching soda makers. >> yeah we have to look at some of these soda makers. we'ver looking at dr. pepper, coca-cola, some of the names on the move. turns out august sales for the soda pop companies have been somewhat weak. dr. pepper has come under pressure. the stock is sagging today. you can see down 1.8% from the previous days. it had run up late in the day yesterday only to see a selloff today. then the pierce, coca-cola
and pepsi, the sales data put together by nielsen showing beverage sales overall were falling last month. those are things to keep an eye on. as well as fact you should look, if anybody hasn't seen the cartoon in the "new york post", it is good one. about supersize sodas in new york and ban that will be taking effect. melissa: i did see that cartoon and i am man about the ban. i need the giant. i can't drink that much soda. lori: you people can. melissa: it is principle of it makes me so mad. lori: exactly. big government is in charge of everything. changes coming to the dow. bye-bye kraft. hello unitedhealth. up next the chairman of s&p's index committee on the big move. melissa: now a look at some of today's winners and losers as we head out to break there. as you can see fossil trading up almost 10%. we'll be right back.
melissa: the major averages are at multiyear highs on the heels of another round of fed stimulus but which stocks should you be watching when the euphoria fades? sandra smith as details on today's trade. sandra. >> very interesting actually. market watch asked a bunch of money managers and mutual fund managers which stocks they thought were, will be the most resilient once the euphoria of qe3 sort of fades. one big answer they got from money managers and mutual fund managers was apple. they like apple because it marches to the beat of its own drum. putting out products people like. hitting all-time highs. as we talk about the stock today, momentum up 72% so far this year. still a pe just 16. that was a favorite among money managers.
surprisingly facebook also they like, looking back to wednesday this week, the biggest single day rally in facebook shares since the company went public. they file like it is bottoming out and could be resilient to qe, euphoria fading. i know i have to hand it back to you but the gold mining stocks have been seriously underperforming gold itself a lot picked gold stocks including newmont mining for great picks and consumer plays like proctor & gamble. lori: a lot of names for us. thank you, sandra. well, standard and poors replacing kraft foods on the dow jones industrial average, not the s&p. united health care is set to take its spot after the bell on friday, a week from today. joining us is david blitzer, chairman of the s&p dow jones indices committee which is the group that made the change. welcome to you. wonderful to have you this afternoon. >> good afternoon. a pleasure to be here. lori: why did you opt to add unitedhealthcare to the dow index? >> it's really a two step
decision. the first was to look at kraft which split itself into two businesses after the market closes on october 1st. the larger one to be called mondelay only has to% of revenue out of is. the 80% is coming out europe and asia. looking at that, looking at the fact the size of the stock would be smaller than kraft today, price would be smaller than kraft today, we felt it was not the best stock to stay in or to join the dow jones industrial average. lori: yet united health, there are so many companies with a larger market cap than united health as i'm sure you're well aware. 17 i believe ahead of it. there is some criticism about that because a lot of folks, "baron's" magazine for one, called for modernization of the dow index to include some of the big pricier names and influential names like apple and google in the tech spear. why did you zero in on united health? >> first you're looking at
two different things, both which matter, price and market value. what also matters and probably a bit more is companies that are important to the u.s. economy, to the u.s. market. companies that might add some representation that wasn't in the dow up until now. one area that is clearly of importance and growing importance is health care and health insurance. while there are some big health care companies in the dow currently, there are all pharmaceutical companies. lori: pfizer and johnson & johnson. >> this is whole another position, a whole another area and an area we see as increasingly important to the american people and one that should be represented in the most watched index around. lori: is there a political side of this? because the anticipation with health care, affordable care act and all the increase, expectations for higher health care spending that i think this kind of goes along with your point, this could be a more influential company, health care company than it has been? >> there is nothing political related to legislation. health care will be important, spending on
health care is likely to continue to rise regardless of who gets elected this coming november or november four years later or probably 44 years later for that matter. health care is important. it will continue to be more important. it is arising piece of u.s. gdp not to have the way a lot of people pay for health care represented in an index like the dow jones industrials didn't make any sense to us. we felt this was the place, the time to represent health care in this very widely watched gauge of the way the financial markets move. lori: we sure appreciate sharing what goes into the decision. the analysis is really fascinating. david, thanks so much. >> thank you. have a good afternoon. melissa: be sure to tune in the one hour special oil's dire straight at 5:00 p.m. i just got back from the middle east. we're reporting on the network everywhere you look on rising tensions in the middle east and gulf and north africa. we looked into what is protecting the oil supply in the area and what is the fallout for global energy
markets that is tonight, 5:00 p.m. eastern. lori: the timing could not be any better. see pictures out of north africa in the middle east. it is showinging. we is a you price of oil rise to $100 a barrel. israel unstable with iran breathing down its back. melissa: i have to say my family is happy that we're home with everything that is going on. automatic cuts are about to go into effect if nothing else is passed. white house is letting us know how the cuts will be implemented. ashley webster with breaking news. [ engine revving ]
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points. now it is 42. ashley: slipping a little bit. >> i think people are watching video out of north africa and middle east. very scary. ashley: ladies thank you very much. i'm ashley webster. tracy: i'm tracy byrnes. with two hours to go stocks are on track for their best week in more than a month although the dow certainly pulled back. the fed giving the market its latest jolt higher but should investors be worried about more trouble from europe? we'll actually have two opposing views ahead. ashley: certainly a sweet week for apple as the first round of iphone 5 preorders sellout in less than an hour. that pushed the stock dangerously close to 700 bucks a share. is it about to bust through another ceiling? we'll ask that question. tracy: peaking at 700 earlier. details on the white house's plan for automatic spending cuts in the new year. as both parties failed to solve the looming fiscal cliff what happens? we're going to tell you what will and won't be cut. that's ahead. ashley: as we mentioned the
dow is up 100 points but certainly off the highs. time for a lock at stocks as we do every 15 minutes. let's head down to nicole petallides on the floor of the new york stock exchange. nicole. >> thanks, ashley, and tracy. we're looking at a market that is taking off. we should take into account the fact that the dow and s&p 500 are at multiyear highs, nearly five-year highs right? we're moving higher. we're 4% off the all-time high or the dow jones industrials that would be 1400 and change. here here today at 13,583. we had a lot of winners, on the heels of our fed head, fem fem which delivered us all -- federal reserve chairman ben bernanke which delivered good news about the bond buying. keeping low rates for extended period and highly accommodative fed. having said that the market is taking off. how about we talk about what is going on with the dow jones industrials, right?
it is made of 30 stocks, kraft being one of them. well kraft will be out. united health care going in. this is on friday after the closing bell on friday september 21st. kraft is spinning off the grocery business. the new company will be monday today lay international. it will be unitedhealthcare that will be a winner as money managers start to buy it. back to you. ashley: kraft out, unitedhealthcare in. nicole, thank you very much. appreciate it. oil topping $100 a barrel for the first time since may on continued violence in the middle east and the announcement of more stimulus from the fed. so how high will it go? that is a big question. our own jeff flock talking to traders in the pits of the cme. jeff, what are they telling you? >> we'll ask somebodywho knows in a second, ashley but first it is not just oil. it is almost everything. just ended in the meat pits. that is one of the openly areas not up today. first throw up oil today. got up over $100 a barrel
for the first time in four months. that is not alone. as we said, gold, platinum, copper, all the precious metals are up. we want to get larry's take on it. first of all you don't necessarily think this is a good thing, do you?. >> this is not a good thing whatsoever. bernanke has made explicitly clear he wants to inflate his way out of the problem that is the met and a half choice. he doesn't want the economy to heal. he wants to debate the dollar. we see everything is rally. >> these guys are shading this. they may not like this. walk with me, larry as we head to euro dollars futures. they may not like this but they're trading this. look at grains today. we had a terrible government report that should have driven corn down. >> absolutely. >> this is up again. >> this is a very angry rally. that is everything behind me. people are throwing up the their hands the tailwind of the central bank can not be underestimated right now. >> before we get away tell you the only losers. as we do we'll walk to the euro dollars. want to keep my eye on this
but the dollar has a huge impact as well. look what was down today. only nat-gas that's because mild weather predicted and look like more stocks than we thought. silver down with profit-taking. last but not least as we said, feeter cad he will. when the price of feed goes up the price of meat goes down. >> sure does. that is something we'll have to get used. we'll have food inflation because of this. dollar is cheaper. it will make it really tough. combine that with a drought and usda report, 'nough said. >> buy commodities says larry. get out of equities, buy commodities. makes more work for us in chicago. ashley: groceries getting expensive. tracy: have a great weekend. markets may want more stimulus but our next guest thinks it is a big mistake. he says global risks are overstated and the market is extremely undervalued. joining us doug cotetae, img investment management.
doug, you don't think the market need it because the economy is actually doing better? >> if you look at the summer rally, it started in june. june was positive. july was positive. so was august. this notion of sell in may we thought wasn't going to work. what we're advocate something getting investors back into the market. then you get this qe stimulus, not only, not only from the u.s. fed but you had omt from the ecb for enough initials. we said, forethought stimulus in the fall. bottom line is, don't fight the fed. i don't necessarily agree with qe3. i think it creates unwarranted inflation but, still don't fight the fed. this market was, to me was going up anyhow because of strong fundamentals and as you mentioned, global risk was coming down anyhow. this just set the fire. this set the spark. and investors on the sidelines are right now, they're watching a melt-up. i don't see it stopping. ashley: you know, doug,
obviously with the fed making this move, a big part of that was based on the unemployment rate and struggle it has been to get that rate down but you say you believe that employment is better than it is being reported. what is that based on and why do you say that? >> well, if you look at the correlation between weekly initial unemployment claims that come on every thursday and unemployment rate, over 10 years, it has been very tight. it has been very closely correlated. recently within the past year that has broken down. initial unemployment claims have been plummeting. that means employment is improving dramatically but the employment rate, headline rate everybody looks at is staying artificially high. i think government statistics are in question. i think government payrolls, i mean overall payrolls are better than reported in government statistics have it wrong. tracy: a little conspiratorial there. talk about getting people back in the market. you say investors are watching a melt-up from the
sidelines. let's get them back in. interestingly you don't think technology or energy is where she should be? >> no, if you want a sector you should be broadly globally diversified. if you want a sector that gets missed is consumer discretionary because consumer discretionary over the past three years has been one of the top performing sectors in all of equities across large, mid and small caps. why? why is that? because i think the consumer is much stronger than anybody's really looking at. if you look at retail sales, people, there was mixed reports on it but the bottom line is retail sales, today, this month, is setting all-time record high. if we have a chart on it you would see it is parabolic. that is not commonly understood. so the consumer, consumer discretionary stocks but also broadly, globally diversified. tracy: doug, i don't know. take out autos and gas sales are pretty anemic. >> that's true. tracy: doug cotetae.
ashley: coming up the white house is saying automatic spending cuts will be deeply destructive to national security. we'll bring you details on the white house plan next. tracy: and for the first time ever the sec is fining an exchange for giving some customers trading data before others. liz macdonald has the details on that next. first as we do every day at this time of day let's take a look how oil is trading especially with all that is going on overseas, up 76 cents. $99.07 a barrel 4g lte has the fastest speeds.
so let's talk about coverage. based on this chart, who would you choose ? wow. you guys take a minute. zon, hands down. i'm going to show you guys another chart. pretty obvious. i don't think color matters. pretty obvious. what'sretty obvious about it ? that verizon has the coverage. verin. verizon. we're going to go to another chart. it doesn't really matter how you present it. it doesn't matter how you present it. verizon. more 4g lte coverage than all other networks combined.
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tdd#: 1-800-345-2550 help you get started today. tracy: we have breaking news from the white house on how it plans to implement the automatic spending cuts looming at the end of this year. rich edson, combing through the details in washington. rich, what have you got? >> i don't have enough paper in bureau to cover this report. 1200 line items, who is exempt, what will get cut specifically. basically this was part of the super-committee deal. the super-committee failed. there are automatic cuts about 100 billion a year over next 10 years. half of that defense spending. half of that domestic spending. as for the defense side, this report from the administration how they're going to enact this says the
report leaves no question that the sequestration as it is known would be deeply destructive to national security. here is some of the broader specifics t would result in a reduction in readiness of many nondeployed units. would involve delays in investment in new equipment, and facilities. cut backs in equipment repairs. declines in military research and development efforts and reduction in base services for military families. specifically how they're going to apply what would be about 50 to $55 billion starting on january 2nd next year to military cuts, they say the calculations show am sequestration of 9.4% for defense discretionary appropriations an 10% for defense function direct spending. half of this also hits some other items. non-defense spending, that includes a 2% cut to medicare providers. a 7.6% cut to other nonexempt defense mandatory programs. 8.2% reduction in nonexempt, non-defense discretionary funding. there are line by line
items. 1200 of them. we now posted them to foxbusiness.com. so if you are investing in anything, that has anything to do with government spending, whether it be domestic spending or military spending, log on to foxbusiness.com and find out if you have been affected. back to you. tracy: rich, this is tough time to be talking about defense cuts, isn't it? when we have our embassies under attack all over the world. this is really difficult. any response to that? >> the administration says, and they say this in their report, this is deeply destructive to national security. the way defense secretary leon panetta phrased it is like putting a gun to your head. these are on top of $400 billion in cuts the defense department already put in place. now again, this is, set in log, not set in stone. after the election congress will work out what is known as the fiscal cliff. this is one component. the spending side of the fiscal cliff. there is the tax increase
side of the fiscal cliff. ashley: right. tracy: rich edson, you are amazing, for coming through all that on a friday afternoon so quickly. oh, my goodness. >> saturday, we would have been this trouble. ashley: thank you, rich. tracy: but he is not wrong, right. look at your stock portfolio now because spending will be cut. that will clearly affect anything you're holding. speaking of stocks, it is 15 after the hour. we've got to go back down to the floor of the new york stock exchange. nicole, the dow certainly pulling back a little but good day for office supply stores. that is because all the kids are going back to school and suckers like you and i are buying notebooks. >> no doubt we've all been hitting stores like staples and officemax and such getting ready for the new school year. the dow had a winning day and winning week on the heels from what we see from the fed. look at staples in particularly. late yesterday we heard from fortune talking about now some of the private the -- equity firms may be looking to take staples quiet and
officemax on notes that date back to the lehman brothers days. officemax can book a gain of $671 million. officemax moves to a new high. when i talk about staples i should say some of the speculation surrounded bain capital. they may be considering a buyout for this retailer, if it were to happen may not happen until later in the year. keep an eye on it. those are what we have so far. those are the winning names for that particular group. and we're multiyear highs for major averages. back you to. tracy: nicole, thank you. when i was at staples every day last week, i'm not kidding you. what is that? ashley: supplies for the teachers every year. tracy: it is annoying. can we go back to chalk and little eraser board. ashley: little, inc. wells, back in the day. securities & exchange commission bringing the first of its kind charges against the new york stock exchange for compliance failures that they say gave some customers
an improper head start on trading information which of course is so critical. liz macdonald is here now with exclusive details in emac's bottom line. >> we've been on the phone with the sec on this one. because when you heard the news about this you say wait a minute. proprietary information going out ahead of retail investor world. ashley: right. >> we have the statement from the director of enforcement at the sec. robert khuzami who is director of enforce mane says early access to market data even measured in milliseconds disproportionately disadvantages retail and long-term investors. hear is the problem n 2008 new york stock exchange said let's make more money off our data feeds. we'll set up two proprietary data feeds separate from what goes into the ticker and sell it to a hedge funds, pension funds, institutional investors. ashley: we're talking milliseconds? >> milliseconds. what those investors are complaining we're not getting that information, in
a timely fashion that we want. basically we want it along with the ticker but it is coming in too slow. so they customized to make money. the deal was, there is technological problem. it was a snafu that wasn't intentional. that is what the sec is saying. that is what nyse is saying. information got out to proprietary clients. they got smacked with a $5 million fine. they settled it without denying or yes --, it was -- >> yeah. this is all coming out because of the flash crash investigation. that's what basically flushed this information out but you know, even though they're saying it's, you know, technological snafu, the bottom line it still erodes market confidence and investor confidence, right? so that not a good thing. tracy: you have to wonder if there was a little something funky going on? >> that's right. ashley: funky indeed. emac, liz macdonald, thank you. >> sure. tracy: technical term. ashley: it is, funky. coming up is spain on the
verge of asking for the next european bailout? many believe they are. leading global analyst steven pope will tell us why he says the united states should be very concerned. tracy: but first before we head out to break, the dow is up 30. look how the dollar is moving right now against the euro. the euro up. dollar down. euro up 1.31. start to put a hamper on those european trips i've been a superintendent for 30 some years at many different park service units across the united states. the only time i've ever had a break is when i was on maternity leave. i have retired from doing this one thing that i loved. now, i'm going to be able to have the time to explore something different.
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>> at 22 minutes past the hour i'm arthel neville. with your fox news minute. 22 people have died and 20 injured. both people killed were demonstrate, while the injured included protesters and police. crowds aingery over an anti-muslim film that insults the prophet muhammad. the pentagon dispatch ad team of marines to yemen to help diplomats and reinforce security at the american embassy following this week's deadly attack. the team was sent after protesters on thursday breached the wall of the diplomatic compound in yemen. delegates of chicago's
teachers unions are set to meet this afternoon and potentially end their five-day strike. union and school board officials worked early into the morning today on a tentative deal with the hope of getting students back to class as early as monday of the those are your news headlines on the fox business network. get you back now to ashley and tracy. tracy: arthel neville. thank you very much. >> you too. ashley: eurozone finance ministers were meeting in cypress and deciding to. joining me to talk about it. stephen, welcome to the show. well, look, many analysts including yourself believe that spain needs a bailout. so, why is prime minister stalling so much and what does he gain from doing that? >> he's noticed that in the past the politicians in greece island and portugal who opted for a bail yet were all shown the door and pushinged out of office.
he shouldn't worry too much about that. he has four years until he has to seek re-election from the people but the opinion polls support for the popular party which leads has fallen by a third. unfortunately the socialist party in spain is such a mess they have not capitalized on that at all. his risk is the party himself might depose him as an incompetent prime minister. what i think you got a situation he said for so many months now that spain does not need a bailout. to suddenly turn out and say actually we do will really show that he is rather inept at the job. ashley: so why should u.s. investors be so concerned what is going on in spain? >> in terms of the influence that spain has and the relationship in terms of trade with the u.s. it is not such a big thing but the fact is spain is the fourth largest economy in the eurozone and u.s. trade with the euro zone is a significant factor. if the eurozone continues to keep flat-lining and we lurch from one worrying situation to another, i.e.,
greece needing a third bailout and will spain finally bite the bullet and go for a assistance package it is dragging this all along. despite all the euphoria that says this a great week for europe we're still in the realm of bandaid solutions. ashley: you think backstop not only esm, bailout found supposedly in place by january but unlimited bond buying by ecb, you don't see that as a significant step towards solving the debt crisis? >> i think what it does is just put as backstop against huge debt soaring to astronomical levels but doesn't do everything to assure despite whatever fine words might be agreed and signed up to that reform and reinvigorating the european economy will take place. what you could actually find that the market could easily say we can not sell short space --. ashley: stephen, we have to to jump in in london.
thank you so much. we have breaking news. >> ash, the president and secretary clinton attending the transfer of remains ceremony marking the return of the to united states, remains of four americans killed in benghazi, libya. and the of the four, two why navy seals, tyrone woods, glen doherty. sean smith an information management officer and the two seals were commissioned to guard the ambassador. as you and i were talking, tyrone woods in particular, three kids, one a newborn. glen doherty, parent, siblings. leaving a lot of loved ones. ashley: you see a podium there. we're expecting comments from president clinton and president obama. if that is the case we'll go back straight there to listen to the comments from the president. tracy: on that news oil prices jumping on the fed's latest move to prop up the economy. plus rising tensions in the middle east. so are we headed back to triple digit crude for good?
we'll have that next. ashley: liz claman live from silicon valley with one company trying to reinvent how college students get text bookses. what a great idea. first let's get a check of some of today's winners and losers with the dow hanging on to gains up 42 points. fossil, not a bad day. up 11%. we'll be right back.
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♪ >> let us pause for a moment of silence. let us pray. gracious god, on behalf of a grateful nation, entered the presence of grieving family members, friends and colleagues. we welcome home for the final time ambassador, chris stevens, mr. sean smith, mr. glen doherty, and mr. tyrone woods. we give you thanks for the lives and selfless service of these men who wanted nothing more than to make a difference in the lives of other people. to bring justice and freedom to
others. to oppose us and their hearts not only character and resolve, but courage and goodwill. we mourn their loss. lest the memories of these men through those who knew and loved them, especially their families for whom we ask your convert, your divine care and your peace in this difficult time. on this occasion, we continue to pray for our nation and its leaders. we ask your blessing on all who serve military and civilian. we pray for our nation's people. we pray for the defeat of the terror and evil that seems to plague our planet. we pray for peace. you are now creator of all. let light shine upon chris, sean, glenn and tyrone. may their souls and the souls of
all the departed through your eternal mercy rest in peace. amen. you may be seated. ladies and gentlemen, it is my honor to present to you the secretary of state, the honorary hillary clinton. >> thank you very much, chaplain. mr. president, mr. vice president, secretary, ambassador , secretary powell and mrs. powell, family members of the four patriots and heroes we bring home. members of the state department family. ladies and gentlemen, today we bring home for americans who
gave their lives for our country and our values. to the families of our fallen colleagues, i offer our most heartfelt condolences and deepest gratitude. sean smith joined the state department after six years in the air force. he was respected as an expert on technology by colleaguesin baghdadand montréal. he enrolled in correspondence courses at penn state and had high futures. he leaves behind a wife and two young children.
in the virtual world that sean helped create, he is also being mourned by countless competitors, collaborators and gamers who shared his passion. tyrone woods, known to most as rone spent multiple tours and iraq and afghanistan. tenth 2010 he protected american diplomatic personnel and dangerous posts from central america to the middle east.
he had the hands of a healer, as well as, the arm of a warrior. earning distinction as a registered nurse and certified paramedic. our hearts go out to tyrone's wife, dorothy, and his three sons tyrone junior, hunter and the last born just a few months ago. glen doherty, who went by bug, was also a former seal and paramedic. he died serving his country and protecting his colleagues. glenn deployed to some of the most dangerous places on earth including iraq and afghanistan.
always putting his life on the line. he safeguarded other americans. our thoughts and prayers are with glenn's father, bernard, his mother, barbara, his brother and sister and their grieving families, friends and colleagues. i was honored to know ambassador chris stevens. i want to thank his parents and siblings who are here today for sharing chris with us and with our country. what a wonderful gift you gave us. over his distinguished career in the foreign service on he made those people's hopes has known. he risked his life to help
protect the libyan people from a tyrant. he gave his life helping them build a better country. people love to work with chris and as he rose through the ranks, they loved to work for him. he was known, not only for his courage, but for his smile. goofy, but contagious. for his sense of fun and that california cool. and the days since the attack, so many libyans, including the ambassador from lidia to the united states, who is with us today, have expressed their sorrow and solidarity. one young woman, her head covered and her eyes haunted with sadness, held up a hand written sign that said, thugs and killers do not represent
benghazi nor islam. the president of the palestinian authority who worked closely with chris when he served in jerusalem sent me a letter remembering his energy and integrity. the flooring and a quote "an act of ugly terror." many others from across the middle east and north africa have offered similar sentiments. this has been a difficult week, for the state department and for our country. we have seen the heaviest fault on our post and benghazi that took the lives of those brave men. we have seen rage and violence directed at american embassies over an awful internet video that we had nothing to do with. it is hard to the american people to make sense of that
because it is senseless. it is totally unacceptable. the people of egypt, libya, yemen and tunisia did not trade the tyranny of a dictator for the tyranny of a mob. reasonable people and responsible leaders in these countries need to do everything they can to restore security and hold accountable those behind these violent acts. we will, under the president leadership, keep taking steps to protect our personnel around the world. there will be more difficult days ahead, but it is important that we do not lose sight of the fundamental fact that america must keep leading the world.
we hope it to those for men to continue the long, hard work of diplomacy. i am enormously proud of the men and women of the state department. i am proud of all of those across our government, civilian and military alike, who represent america abroad. they help make the united states the greatest force for peace, progress and human dignity the world has ever known. if the last few days teach us anything, let it be this, that this work and the men and women who risk their lives to do it are at the heart of what makes america great and good. we will wipe away our tears,
stiffen our spines and face the future undaunted. we will do it to gather. protecting and helping one another. just like sean smith, tyrone woods, glen doherty and chris stevens always did. may god bless them and grant their families peace and solace and may god continue to bless the united states of america. and now let me have the great honor of introducing someone who came to the state department earlier this week to grief with us, he well understands and values the work that these men were doing for our country.
the president of the united states. >> scripture teaches us greater love hath no man than this. but a man lay down his life for his friends. glen doherty never shied short of adventurous. he believed in his life he could make a difference, the calling he fulfilled as a navy seal. he served with distinction and i rock and worked in afghanistan and their and benghazi as he tended to others he laid down his life. loyal as always, protecting his
friends. today, glenn is home. tyrone woods devoted 20 years of his life to the fields. the quiet professional. they may not have known, but also served in iraq and afghanistan. and there and benghazi he was far from his children and he laid down his life as he would have for them protecting his friends. today, tyrone is home. sean smith it seems lived to serve. first in the air force band with you at the state department. he knew the perils of this calling for this time in
baghdad. there and benghazi, far from home, he surely thought of his family and he laid down his life in service to us all. today, sean is home. chris stevens was everything america could want and an ambassador as the whole country has come to see. how he first went to the region as a young man as a peace corps. he arrived in libya on a cargo ship. how he believed in libya and its people and how they loved him back. they are in benghazi he laid down his life for his friends. libyan and american. and for us all. today, chris is home. for americans, for patriots,
they loved this country. they chose to serve it and served it well. they had a mission and they believed in it. they knew the danger and they accepted it. they did not simply embrace the american ideal, they lived it. they embodied it. the courage, the hope, and, yes, the idealism. that fundamental american belief that we can leave this world a little better than before. that is who they were and that is who we are. if we want to truly honor their memory, it is who we must always be. i know that this awful loss, the
terrible images of recent days, the pictures we are seeing again today, have caused some to question this work and there is no doubt these are difficult days. and moments as difficult as this, so much anger and violence, even the most hopeful among us must wonder, but amid all the images of this week, i also think of the libyans who took to the streets of homemade signs aggressing their gratitude to an american who believed what we could achieve to gather. i think of a man and benghazi with this time in english. it said chris stevens was a friend to all libyans. chris stevens was a friend. that is the message these for patriots said.
that is the message that each of you send every day. civilians, military, two people in every corner of the world that america is a friend and that we care not just about our own country, our own interests, but about theirs. that even as voices of suspicion, this trust, seek to divide countries and cultures from it each other. we will never stop working for the dignity and freedom that every person deserves. whatever their creed. whatever their faith. that is the essence of american leadership. that is the spirit that says this apart from other nations. this was their work and benghazi. this is the work we will carry on.
to you, their families, and colleagues, to all americans, no this, their sacrifice will never be forgotten. we will bring to justice those who took them from us. we will stand fast against the violence on our diplomatic missions. we will continue to do everything in our power to protect americans serving overseas, whether that means increasing our security, working with host countries which have an obligation to provide security, and making it clear that justice will come to those who harm americans. most of all, even in our grief, we will be resolute. for we are americans. we hold our head high.
knowing that because of these patriots, because of you, this country that we love will always shine as a light unto the world. greater love hath no man than this and a man lay down his life for his friends. the flags served under now carries them home. god bless these men who laid down their lives for us all. may god watch over your families and all who love them. may god bless these united states of america. >> before our benediction, we will stand together for the playing of the national anthem as we honor the nation for which